Financial stability of pension systems in transition countries

Abstract

The aim of this study is to identify the crucial factors (beside demographics) influencing the public expenditure on pension in ten transition countries during the period of 2000-2015. During the review of literature, we observed a lack of empirical studies for the latter, in terms of the intensification of other factors affecting the old-age pension expenditures. The content of this paper is divided in two parts: the theoretical - which includes a literature review and theoretical justification for the choice of independent (or explanatory) variables affecting old-age pension expenditure, and the second part which includes the empirical part. As of the empirical part, we used dynamic panel data GMM in order to assess the effect of the factors affecting old-age pension expenditure in transition countries. Furthermore, we apply secondary data based on the literature review on pension expenditure and pension system as a whole, which served to us for the development of hypotheses, research questions and theoretical model - presented and tested in this paper.